WILLS, TRUSTS & ESTATES: PLAIN AND SIMPLE – Changing Your Residence For State Tax Purposes – More To It Than You May ThinkMay 27, 2021 | Patricia C. Marcin |
Oftentimes, in the summer, we return to the topic of changing your residence for state tax purposes. There are five factors which the tax authorities will look to in determining whether someone has changed their residency. This is frequently referred to synonymously as one’s “domicile” for tax purposes: (1) physical presence, (2) home, (3) family and business activities, (4) personal property of significance to the taxpayer, and (5) documentary evidence. One factor alone will not determine a taxpayer’s change of domicile. If you are considering a change of domicile to another state for tax purposes, make sure you are ready to satisfy all of the factors to prove your change of “home,” and discuss your plans with your tax advisor.
- Patricia C. Marcin